Fox's restraint in streaming wars pays off as Disney struggles
By
The Economist
A snack-sized bagel for a snack-sized appetite.
Summary
Fox has emerged as a surprising winner in the streaming wars by avoiding the costly content-spending race that competitors like Disney engaged in. While Disney invested heavily in building streaming services to compete with Netflix, Fox maintained its focus on traditional linear television. This strategy has paid off significantly, with Fox's share price rising 40% over five years while Disney's fell by the same amount. The article also references a $22bn deal creating a formidable new power in Hollywood.
Key quotes
· 3 pulledOne of the main winners of the streaming wars, Hollywood's years-long content-spending free-for-all, has turned out to be a non-combatant.
While companies such as Disney blew gazillions on building streaming services to compete with the likes of Netflix, others kept their powder dry.
It has been rewarded with a 40% rise in its share price over the past five years, during which time Disney's has fallen by the same proportion.
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